Market Watch Monday, March 22, 2021 www.sekeryatirim.com.tr Agenda

22 M onday 23 Tuesday 24 Wednesday 25 Thursday 26 Friday  U.S., February exist-  Treasury auction  Germany and Eurozone,  ECB, Lagarde’s  TurkStat, March capacity ing home sales March Markit non-mfg. PMI speech utilization  U.S., February new home sales  Germany and Eurozone,  U.S., 4Q20 GDP  Germany, March IFO index March Markit mfg. PMI Growth  U.S., February personal  U.S., jobless claims income & spending  U.S., February durable goods orders  U.S., March Michigan Con-

sumer sentiment  U.S., March Markit mfg. & non -mfg. PMI

Outlook Major global stock markets closed lower on Friday, attributable to the US Federal Reserve stating that it would not extend the temporary regulatory relief for banks that is to expire on March 31st, which had lowered their capital requirement by excluding the US Treasury and central bank re- Volume (mn TRY) BIST 100 serves, in calculating their Supplementary Leverage Ratio. Having started the day rather negatively, the BIST100 closed 1.41% lower at 1,528.99 on 1.555 1.570 1.562 1.551 Friday, led by the decline among banking sector stocks. The TRY appreci- 1.529 ated, as the CBRT had clearly maintained its tight stance, introducing a 48.000 1.600 rate hike of 200bps, diverging positively. However, the BIST faced strong 40.000 1.500 selling pressure and diverged negatively from its peers on the last trading 32.000 day of the week, attributable to concerns over recent political relations with 1.400 24.000 the US. Then, CBRT Governor MR Ağbal was dismissed and replaced 28.355 25.921 1.300 16.000 24.898 with former MP Prof. Sahap Kavcıoğlu, as published in the Official Gazette 21.475 on Saturday. In a statement released a day after his appointment to the 8.000 18.576 1.200 new role, the new CBRT Governor has said that the CBRT would continue 0 1.100 to use monetary tools effectively, in line with its main objective of achieving 15-Mar 16-Mar 17-Mar 18-Mar 19-Mar a permanent decline in inflation, and that Monetary Policy Committee meetings would be held as previously scheduled. Investors, especially Indices (TRY) Previous Last Chg. YTD those in the overseas territories, have perceived this replacement as a step back from the orthodox policies resumed by the CBRT, and have BIST 100 1.551 1.529 -1,41% 3,54% initially had a strongly negative reaction; the USD/TRY rate has reached BIST 30 1.626 1.591 -2,14% -2,75% 8.48 in the Asian markets, before declining to c.8.00 levels at 8:55 IST BIST-Financial 1.575 1.536 -2,47% -1,88% time. The BIST is thus expected to display a markedly negative opening BIST-Industrial 2.747 2.729 -0,63% 16,63% today in the wake of the strong depreciation of the TRY and amid con- BIST-Services 1.241 1.227 -1,10% 2,91% cerns that the CBRT may step away from the orthodox policies it has re- sumed earlier, after the replacement of its Governor. Selling pressure may Advances Declines Most Active continue during the day, although we may also observe reactionary buying Stocks (%) Stocks (%) Stocks Vol (TR) within the day depending on possible declarations to be made by the ARTI 10,00 DOKTA -9,97 FROTO 2.558.117.763 economy management. The CBRT and BRSA may react to the strong ORMA 10,00 CLEBI -8,48 PETKM 1.707.610.563 depreciation of the TRY. On the other hand, jitters in the market are likely ARSAN 9,99 YESIL -7,95 THYAO 1.531.787.835 to be eased by messages explaining the reason for the replacement of the ISKPL 9,96 SANKO -7,64 GARAN 1.235.533.828 CBRT Governor and underlining that current policies would be maintained. Meanwhile, political relations with the US and the EU plus local political BLCYT 9,95 DENGE -7,33 VESTL 1.160.606.949 developments will also be effective in setting the course of the BIST in the near term. The High Representative of the EU for foreign affairs and the Money Market Previous Last Pr. Mn YTD Commission are expected to submit a report on EU- relations O/N Repo (%) 17,40 17,00 16,99 18,49 ahead of the European Council Summit, planned to be held this week. Negative results from this meeting such as additional sanctions on Turkey Bond (Benchmark, %) 16,31 16,38 15,06 14,96 may increase selling pressure in the Turkish equity markets. And inverse- Currency Previous Last Chg. YTD ly, positive results could help the benchmark index recover last week’s US$ 7,2189 7,8968 9,39% 6,15% losses. The US and German futures and the Asian markets have been Euro 8,5925 9,3868 9,24% 2,78% declining today. We expect the BIST to open negatively with selling pres- sure to continue within the day. Trading is likely to be volatile throughout Euro/Dolar 1,1903 1,18859 -0,14% -2,88% the day; we may observe reactionary buying as well, depending on any declarations from the economy management. SUPPORT: 1.460 - 1.431 Commodity Previous Last Chg. YTD RESISTANCE: 1.491 - 1.514 Oil (Brent spot, $) 64,3 64,1 -0,38% 24,29% Oil (NYMEX future, $) 61,4 61,2 -0,36% 26,44% Gold (Ounce, $) 1.745,2 1.731,4 -0,79% -8,80% Money Market: Silver (XAG, $) 26,2 25,6 -2,40% -3,08% The Lira was positive on Friday, gaining 1.28% against the USD to close at 7.2126. Additionally, the currency appreciated by 1.41% against the Şeker Funds Previous Last* Chg. YTD basket composed of $0.50 and €0.50. Meanwhile, the local fixed income Fiba Portfoy Şekerbank Money 1,984203 1,986996 0,14% 3,52% markets were relatively flat. The ten-year benchmark bond was traded within a tight range of 14.02%-14.08%, ending at the 14.06%, 4 bps above Fiba Portfoy Şekerbank Short T. 0,023145 0,023176 0,13% 3,34% its previous close. * Prices as of 21-Mar-21

Market Watch Monday, March 22, 2021 www.sekeryatirim.com.tr

Domestic Headlines: World Indices America Previous Last Chg. YTD February's labor market data emerges today. With the effect of the recent Dow Jones (US) 32.862 32.628 -0,71% 6,60% economic recovery, we expect a slight improvement in unemployment fig- Nasdaq (US) 13.116 13.215 0,76% 2,54% ures to continue. Following the methodology change, the data to be an- S&P 500 (US) 3.915 3.913 -0,06% 4,18% nounced will only reflect February's figures. Our post-data detailed report Europe Previous Last Chg. YTD will be published within the day. Dax (Germany) 14.776 14.621 -1,05% 6,58% Sector News: FTSE 100 (UK) 6.780 6.709 -1,05% 3,84% CAC 40 (France) 6.063 5.998 -1,07% 8,04% *** Turkish banks have restructured the debt of football clubs with up to PSI20 (Portugal) 4.789 4.848 1,23% -1,02% 9.5Y maturity and 2.5 year grace period for up to TRY8.4bn. The consorti- RTSI (Rusia) 1.489 1.474 -0,99% 6,24% um of banks includes Ziraatbank (TCZB.TI; N/C) and (DENIZ.TI; Asia Previous Last Chg. YTD N/C), (HALKB.TI; MP) and Yapi Kredi Bank (YKBNK.TI; OP). Nikkei (Japan) 30.217 29.792 -1,41% 8,56% *** Newly-appointed CBRT chairman Sahab Kavcioglu held a meeting with Hang Seng (Hong Kong) 29.406 28.991 -1,41% 6,46% the bank CEOs on the Board of Directors of the Banks Association of Tur- Shanghai Comp. (China) 3.463 3.405 -1,69% -1,97% key (TBB). Kavcioglu has underlined that the key priority of the Central KOSPI (South Korea) 3.066 3.040 -0,86% 5,78% Bank would continue to be the fight against inflation. Additionally, he em- Sensex (India) 49.217 49.858 1,30% 4,16% phasized that there would be no change in the policies of the Central Bank Turkdex (Set. Price) Previous Last Chg. YTD in the new period. INX30 (April 21) 1.623 1.583 -2,47% -4,58% USD (April 21) 7,4838 7,398 -1,15% -2,45% Company News: EURO (April 21) 8,9376 8,803 -1,50% -5,69% Arçelik (ARCLK.TI; OP) has obtained CMB approv al for its request to GOLD (April 21) 417,13 414,15 -0,71% -11,16% issue bonds, bills or similar debt instruments for a total amount of up to Portfolio Inclusion Inclusion Last Chg. BIST US$1bn or equivalent in foreign currencies, within a one-year period and Recommend. Date Price Close (%) Relative with various compositions and terms, to be determined by market condi- Tofas 06/09/19 18,98 37,00 94,9% 26,2% tions, one or more at a time, and to be sold outside Turkey without being Şişecam 18/01/21 7,82 7,70 -1,5% -1,8% offered for sale domestically (Neutral). 18/01/21 15,19 16,34 7,6% 7,3% 18/01/21 6,91 5,92 -14,3% -14,6% Kardemir (KRDMD.TI; OP) Yolbulanlar Nakliyat, a company chaired by Arcelik 07/12/20 27,98 34,98 25,0% 8,7% the Yolbulan family, which has a BoD member in Kardemir, has shared selling 1.0mn TL nominal worth of Group D shares of Kardemir within a 08/03/21 39,28 38,86 -1,1% -0,2% price range of TRY 7.58 – TRY 7.61 per share (c.0.09% of the Company’s 01/11/18 11,93 15,85 32,9% -19,7% share capital, c.0.84% of KRDMD shares’ LTM average daily trading vol- Garanti Bank 17/01/19 9,25 8,86 -4,2% 2,7% ume) on March 18, 2021. Following this transaction, Yolbulanlar Nakliyat’s Portfolio Yield (yoy) 88,0% 5,5% stake in Kardemir has declined to 1.15%. Yolbulan Demir, which is a Yol- Portfolio Yield (mom) -0,3% 0,8% bulan family company as well, also shared selling 382,331 TL >>>

>>> nominal worth of Group D shares of Kardemir at a price of TRY 7.59/sh (c.0.03% of the Company’s share capital, c.0.16% of KRDMD shares’ LTM average trading volume) on March 18, 2021. Following this transaction, Yolbulanlar Demir’s stake in Kardemir has declined to 3.78%. As a result, the total Yolbulan stake, together with that of other Yolbulan family members and companies has declined to 4.95%. Possi- ble high volume stake sales or purchases may create some volatility in Kardemir’s share performance. Türk Telekom (TTKOM.TI; OP) The collective bargaining agreement negotiations between Turk Telekom and Haber-Is union are ex- pected to begin on April 5, 2021. Separately, upon Mr. Ertuğrul Altın ’s resignation from his duty as a Board member, Mr. Enver İskurt, the Dep- uty Minister of Transport and Infrastructure, who has been nominated by the Group A shareholders, has been appointed to this board member- ship position, which became vacant after Mr. Ertuğrul Altın’s resignation, for the remaining office term of his predecessor (Neutral).

This document has been prepared by the Equity Research Department of Şeker Invest. The information and data used in this re- port have been obtained from public sources that are thought to be reliable and complete. However, Şeker Invest does not accept responsibility for any errors and omissions. This document should not be construed as a solicitation to buy or sell securities he- rein. This document is to be distributed to qualified emerging market investors only.

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